Schaeffer's 43rd Anniversary Stock Picks in 2024

Apple Props Up Dow, Nasdaq Notches Seventh-Straight Win

Coronavirus infection spikes capped gains

Deputy Editor
Jun 22, 2020 at 4:27 PM
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After backpedaling earlier this afternoon, major indexes staged a comeback to finish the day with solid gains. The Nasdaq Composite surged to close above 10,000, led by rises from major tech companies. Meanwhile, the Dow tacked on just over 150 points, with a notable push from FAANG giant Apple (AAPL), which surged after announcing it will use its own chips in future Mac computers instead of Intel (INTC). Despite the good news, gains were capped after the U.S. reported more than 30,000 new coronavirus cases on Friday, the highest number of confirmed one-day infections since the beginning of May, in addition to record-high single-day infections in at least four states.

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  • Plus, SHW brushed off a sunny sales guidance; Walmart stock lands upgrade; and why GE just lost traction.

The Dow Jones Industrial Average (DJI - 26,024.96) rose 153.5 points, or 0.6% for the day. Nike (NKE) ran 3.9% higher, while Walgreens Boots Alliance (WBA) fell 2%.

Meanwhile, the S&P 500 Index (SPX - 3,117.86) gained 20.1 points, or 0.7%, and the Nasdaq Composite (IXIC - 10,056.48) added 110.4 points, or 1.1%.

Meanwhile, the Cboe Volatility Index (VIX - 31.77) fell 3.4 points, or 9.5%, for the day.

Closing Summary June 22

NYSE Nasdaq June 22

5 Items on Our Radar Today

  1. The Chicago Fed's national activity index, a weighted average of 85 economic indicators, hit a record-high in May, rising to 2.61 from a record-low of -17.89 in April. For context, a value of zero indicates the national economy is expanding at a historical rate. (MarketWatch)
  2. U.S. home sales hit their lowest level in nearly 10 years, bolstering expectations for a contraction in housing market activity to come. (Reuters)
  3. Sherwin-Williams stock took a hit despite a picturesque sales guidance. 
  4. An "era of amplified earnings growth" signals upgrade for Walmart stock
  5. Why GE skid after naming a new auditor

There were no earnings of note today.

Unusual Options Activity June 22

Data courtesy of Trade-Alert

Oil and Gold Build on Momentum

Building off of the end of last week's momentum, oil prices rose today thanks to tighter supplies from major producers. Gains were capped, however, as coronavirus lockdowns eased despite a global rise in new infections that could stall crude demand. For its last day of trading, the July-dated crude contract tacked on 71 cents, or 1.8%, to settle at $40.46 per barrel.

Gold made a climb as well to kick the week off, hitting its highest level in almost 10 weeks as investors sought shelter in the metal after the surge in COVID-19 cases dashed optimism for a speedy economic recovery. Gold for August delivery added $13.40, or 0.8%, to settle at $1,766.40 an ounce.

 

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